🚀 Futures Trading with Prop Firms
Futures trading with prop firms allows traders to trade futures contracts using the firm's capital instead of their own. Traders buy or sell assets like commodities or financial instruments at a set price on a future date, aiming to profit from price movements.
1. 📝 The Evaluation Process
To access a prop firm’s capital, traders must typically complete an evaluation process. This process assesses the trader’s skills, discipline, and risk management abilities.
Traders must prove they can handle market risks and follow the firm’s guidelines before being given access to larger capital.
💸 Trading with Prop Firm Capital
Once the evaluation is successful, traders gain access to the firm's capital to execute trades.
2. 🤝 Profit Sharing
Profits from trades are shared between the trader and the prop firm. While the trader benefits from leveraging the firm’s resources, the firm retains a portion of the profits.
⚖️ Benefits & Expectations
3. 📈 No Personal Financial Risk
Prop firms allow traders to take larger positions without the risk of losing their personal funds, giving them the opportunity to scale their trading strategies.
4. 🛠️ Advanced Resources
Traders benefit from advanced trading platforms, tools, and market insights that prop firms provide, enabling them to make more informed decisions.
🔒 Performance & Risk Management
However, there are high expectations to meet:
Traders must follow strict risk management rules set by the firm, and consistently meet performance targets. Failing to do so may result in losing access to the firm’s capital.